Star Air raises Rs 150 crore to boost fleet, routes and operations

Bengaluru-based Sanjay Ghodawat Group’s regional carrier Star Air has taken a major step in its expansion journey by raising INR 150 crore in the first tranche of its Series B funding round. This marks the airline’s first-ever external fundraise since it began operations in 2019.

The investment has come from a group of prominent investors, including Micro Labs Ltd, Deepak Agarwal of Bikaji Foods, and several others. The fresh capital will help Star Air speed up its growth plans at a time when India’s regional aviation market is expanding rapidly.

The airline also plans to raise another INR 200 crore by FY 2026–27 to support its long-term vision.

Star Air said that the newly raised funds will be used to expand its fleet size, add more routes across India, strengthen its NSOP (Non-Scheduled Operator Permit) operations and further develop its Maintenance, Repair & Overhaul (MRO) capabilities

Shrenik Ghodawat, Managing Director of the Sanjay Ghodawat Group, which owns the airline, said the company’s immediate priority is to reach more parts of the country. He said the goal is to “connect more cities and communities with safe, reliable, comfortable, and affordable air travel,” adding that the new funding will help the airline scale these efforts much faster.

The fundraise comes at a time when India’s aviation sector is seeing record demand, driven by rising air travel and government support for regional connectivity. Star Air operates largely under the UDAN regional connectivity scheme and has grown steadily in secondary and underserved markets.

CEO Captain Simran Singh Tiwana described the investment as an important milestone for the airline’s future. He said the funding would “help speed up fleet expansion, improve route efficiency, and support further investments in NSOP and MRO capabilities,” noting that the airline remains focused on high safety standards and a smooth travel experience for passengers.

Star Air has set an ambitious target of building a 50-aircraft fleet by 2030.

Since its launch, Star Air has expanded quickly with a total fleet of 11 aircraft comprising of 8 Embraer E175s and 3 Embraer E145s and 4 Airbus helicopters

The airline plans to significantly grow its Embraer fleet over the coming years, supported by improved maintenance capacity and expanded operations. With this funding boost and a clear roadmap for the next decade, Star Air is positioning itself as an important player in India’s fast-growing regional aviation network.